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Price strategy considering fairness concerns in closedloop supply chain under asymmetric information

Author(s): Li Xiang-Rong

Based on the theory of Nash bargaining fairness concerns, the model is built in this paper. We explore that retailer confess or lie about its recycling cost, which impact on the optimal pricing strategies of closed-loop supply chain members, their own profits and effectiveness as well as the total supply chain effectiveness, and verified with numerical analysis. Research shows that the retailers lying behavior acts on fairness concerns coefficient, which makes it have a certain impact on the optimal pricing of closed-loop supply chain members, as well as retailers’ revenue, effectiveness and system total effectiveness.

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